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Report Date : |
20.06.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Old Nizwa Road, Rusayl Industrial Area 22, Rusayl 124 |
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Country : |
Oman |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
27.08.1980 |
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Com. Reg. No.: |
1/10231/1 |
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Legal Form : |
Omani Joint Stock Company |
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Line of Business : |
Engaged in the manufacture, bottling and packaging of vegetable oils and related products |
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No of Employees : |
530 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Oman |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
OMAN - ECONOMIC OVERVIEW
Oman is a middle-income economy that is heavily dependent on dwindling oil resources. Because of declining reserves and a rapidly growing labor force, Muscat has actively pursued a development plan that focuses on diversification, industrialization, and privatization, with the objective of reducing the oil sector's contribution to GDP to 9% by 2020 and creating more jobs to employ the rising numbers of Omanis entering the workforce. Tourism and gas-based industries are key components of the government's diversification strategy. However, increases in social welfare benefits, particularly since the Arab Spring, will challenge the government's ability to effectively balance its budget if oil revenues decline. By using enhanced oil recovery techniques, Oman succeeded in increasing oil production, giving the country more time to diversify, and the increase in global oil prices through 2011 provided the government greater financial resources to invest in non-oil sectors. In 2012, continued surpluses resulting from sustained high oil prices and increased enhanced oil recovery allowed the government to maintain growth in social subsidies and public sector job creation. However, the Sultan made widely reported statements indicating this would not be sustainable, and called for expanded efforts to support SME development and entrepreneurship. Government agencies and large oligarchic group companies heeded his call, announcing new initiatives to spin off non-essential functions to entrepreneurs, incubate new businesses, train and mentor up and coming business people, and provide financing for start-ups. In response to fast growth in household indebtedness, the Central Bank reduced the ceiling on personal interest loans from 8 to 7%, lowered mortgage rates, capped the percentage of consumer loans at 50% of borrower's salaries for personal loans and 60% for housing loans, and limited maximum repayment terms to 10 and 25 years respectively
|
Source
: CIA |
Company Name : AREEJ VEGETABLE OILS AND DERIVATIVES SAOG
Country of Origin : Oman
Legal Form : Omani Joint Stock Company
Registration Date : 27th August 1980
Commercial Registration Number : 1/10231/1
Issued Capital : RO 4,600,000
Paid up Capital : RO 4,600,000
Total Workforce : 530
Activities : Manufacture, bottling and packaging of vegetable oils and related
products.
Financial Condition : Fair
Payments : Nothing detrimental uncovered
Operating Trend : Steady
AREEJ VEGETABLE
OILS AND DERIVATIVES SAOG
Street : Old Nizwa Road
Location : Rusayl Industrial Area
PO Box : 22
Town : Rusayl 124
Country : Sultanate of Oman
Telephone : (968) 24448000 / 24446270 / 24446458
/ 24446459 / 24446460
Facsimile : (968) 24448099 / 24446207 / 24446457
Email : mail@avod.com.om
Subject operates
from a large suite of offices and a factory that are owned and located in the
Industrial Area of Rusayl.
Name Position
·
Nasser
Bin Muhammed Bin Nasser Al Hadhramy Chairman
·
V
Venkatraman Vice
Chairman
·
Nasser
Bin Khalifa Al Kilbani Director
·
H P
Kothary Director
·
Gamal
Mohammed Ahmad Director
·
Prem
Maker Director
·
E M
Ashraf Director
·
Mohammed
Bin Suleiman Al Ismaily General
Manager
Date of Establishment : 27th
August 1980
Legal Form :
Omani Joint Stock Company
Commercial Reg. No. : 1/10231/1
Issued Capital : RO 4,600,000
Paid up Capital : RO 4,600,000
·
Mohsin
Haider Darwish LLC 30.50%
·
Dr Omar
Bin Abdul Muniem Al Zawawi 24.98%
·
Omani
businessmen and private investors 44.52%
·
Areej
Vegetable Oils & Derivatives SAOG LLC (Previously known as Premium Trading
LLC)
United Arab Emirates
Activities: Engaged in the manufacture, bottling and
packaging of vegetable oils and related products.
Import Countries
: Europe and the Far East.
Operating Trend: Steady
Subject has a
workforce of approximately 530 employees.
Financial
highlights provided by local sources are given below:
Currency: Riyal
Omani (RO)
|
Balance
Sheet |
|
|
Group |
Parent Company |
Group |
Parent Company |
|
|
|
|
31/12/13 |
31/12/13 |
31/12/12 |
31/12/12 |
|
Assets Non-current assets |
|
|
|
|
|
|
|
|
|
19,691,313 |
19,691,313 |
17,098,321 |
17,098,321 |
|
|
|
|
- |
31,500 |
- |
31,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
19,691,313 |
19,722,813 |
17,098,321 |
17,129,821 |
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Current assets |
|
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|
|
|
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Stock |
|
|
14,457,797 |
14,457,797 |
16,541,559 |
16,541,559 |
|
Debtors and prepayments |
|
|
11,792,531 |
11,792,531 |
9,886,906 |
9,886,906 |
|
Cash |
|
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10,679 |
10,679 |
15,229 |
15,229 |
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|
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26,261,007 |
26,261,007 |
26,443,694 |
26,443,694 |
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|
|
|
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|
|
|
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TOTAL ASSETS |
|
|
45,952,320 |
45,983,820 |
43,542,015 |
43,573,515 |
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EQUITY AND LIABILITIES |
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|
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Equity |
|
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|
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Share capital |
|
|
4,600,000 |
4,600,000 |
4,600,000 |
4,600,000 |
|
Share premium |
|
|
76,841 |
76,841 |
76,841 |
76,841 |
|
Legal reserve |
|
|
1,533,333 |
1,533,333 |
1,533,333 |
1,533,333 |
|
Distributable reserve |
|
|
575,976 |
575,976 |
575,976 |
575,976 |
|
Retained earnings |
|
|
4,479,419 |
4,479,419 |
3,420,002 |
3,420,002 |
|
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11,265,569 |
11,265,569 |
10,206,152 |
10,206,152 |
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Liabilities |
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Non-current liabilities |
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|
|
|
|
|
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4,414,402 |
4,414,402 |
5,673,101 |
5,673,101 |
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Deferred taxation |
|
|
410,513 |
410,513 |
393,797 |
393,797 |
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|
|
1,456,265 |
1,456,265 |
1,317,796 |
1,317,796 |
|
|
|
|
|
6,281,180 |
6,281,180 |
7,384,694 |
7,384,694 |
|
Current liabilities |
|
|
|
|
|
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Bank overdrafts |
|
|
35,406 |
35,406 |
115,814 |
115,814 |
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Short term loans |
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|
9,704,000 |
9,704,000 |
7,601,000 |
7,601,000 |
|
Current portion of long term loan |
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|
1,258,699 |
1,258,699 |
1,258,699 |
1,258,699 |
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Creditors and accruals |
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|
17,095,625 |
17,095,625 |
16,672,245 |
16,672,245 |
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Due to a subsidiary |
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|
- |
31,500 |
- |
31,500 |
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Taxation |
|
|
311,841 |
311,841 |
303,411 |
303,411 |
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|
|
|
28,405,571 |
28,437,071 |
25,951,169 |
25,982,669 |
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Total liabilities |
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34,686,751 |
34,718,251 |
33,335,863 |
33,367,363 |
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TOTAL EQUITY AND LIABILITIES |
|
|
45,952,320 |
45,983,820 |
43,542,015 |
43,573,515 |
|
Statement of Comprehensive Income Sales |
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92,100,407 |
91,674,001 |
|
Cost of goods sold |
|
|
(83,095,225) |
(83,360,975) |
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|
|
|
|
|
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Gross profit |
|
|
9,005,182 |
8,313,026 |
|
Distribution expenses |
|
|
(3,104,733) |
(2,598,946) |
|
|
|
(2,820,313) |
(2,825,949) |
|
|
Other operating income |
|
|
37,243 |
77,540 |
|
|
|
|
|
|
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Operating profit |
|
|
3,117,379 |
2,965,671 |
|
|
|
|
|
|
|
|
|
(319,405) |
(311,046) |
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Directors’ meeting attendance fees and remuneration to Chairman |
|
|
(30,000) |
(29,500) |
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|
|
|
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Profit for the year before taxation |
|
|
2,767,974 |
2,625,125 |
|
|
|
|
|
|
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Taxation |
|
|
(328,557) |
(311,415) |
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|
|
|
|
|
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Net profit and total comprehensive income for the year |
|
|
2,439,417 |
2,313,710 |
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|
|
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Local sources consider subject’s financial condition to be Fair.
·
Bank
Dhofar Al Omani Al Fransi
Muttrah Business District
PO Box: 1507, Ruwi 112
Muscat
Tel: (968) 24790466
Fax: (968) 24797246
·
Oman
International Bank SAOG
Al Khuwair
PO Box: 1727, Seeb 111
Muscat
Tel: (968) 24682500
Fax: (968) 24682800
·
National
Bank of Oman
Muttrah Business District
PO Box: 751, Ruwi 112
Muscat
Tel: (968) 24708894 / 24708630 / 24708684
Fax: (968) 24707781 / 24703972
No complaints
regarding subject’s payments have been reported.
During the course of
this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.00 |
|
|
1 |
Rs. 102.04 |
|
Euro |
1 |
Rs. 81.71 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
|
|
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|
Report Prepared
by : |
DPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.